NLC accuses FG of diverting 40% of workers’ NSITF contributions, issues 7-day ultimatum

The Nigeria Labour Congress (NLC) has accused the Federal Government of unlawfully diverting 40 percent of workers’ contributions from the Nigeria Social Insurance Trust Fund (NSITF) into the national coffers as revenue — a move it says violates the law establishing the agency and undermines workers’ social protection rights.

In a communiqué issued at the end of its Central Working Committee (CWC) meeting held on Wednesday, August 13, 2025, and signed by NLC President Joe Ajaero, the union gave the government seven working days — from Thursday, August 14 — to account for and return all diverted funds.

It warned that failure to comply would leave the Congress unable to guarantee industrial peace in the sector.

“The NSITF must account for and return all diverted funds within seven (7) working days from today. If at the end of these seven working days nothing is done, NLC will no longer guarantee industrial peace in the sector,” the communiqué stated.

The NLC described the diversion as “a flagrant violation” of the NSITF Act, adding that the fund “belongs to the Nigerian working class” and should not be treated as state revenue.

The union also accused the government of attempting to amend the NSITF Act in a way that would disenfranchise workers and hand full control of the fund to the state.

The communiqué further condemned what it called “false claims” by the current administration over ownership of the NLC National Headquarters, as well as alleged “cyber and media bullying” of trade unions and their leaders.

 “These actions represent a direct attack on workers’ rights, hard-earned resources, and the principle of tripartite governance enshrined in international labour standards,” the NLC said, vowing to mobilise “all legitimate means” to safeguard workers’ interests.

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In addition to the NSITF dispute, the NLC demanded that the Federal Government constitute the governing board of the National Pension Commission (PENCOM) within seven days and provide the union with a full status report on pension funds.

The Congress argued that the prolonged absence of a PENCOM board contravenes the Pension Reform Act, strips away statutory tripartite oversight, and exposes the funds to “mismanagement and political interference.”

“Pension funds are deferred wages, not state revenue,” the communiqué stressed, warning that continued non-compliance with the law would not be tolerated.

The NLC also ratified the dissolution of its state administrative council in Edo State and the appointment of a caretaker committee. It reiterated its zero-tolerance stance on indiscipline and pledged strict enforcement of its constitution across all state councils.

With the ultimatum clock now ticking, the standoff between the NLC and the Federal Government sets the stage for a potential escalation in labour tensions if the demands go unmet.